Word problem

Question

A piece of machinery, initially purchased for $25,000, decreases in value by 1.4% per year. Determine a model of the form v=kb^t that can be used to predict  the value of this machinery if t is measured in years.

Answer 1

v = 25000(98.6)^t     The rate is 98.6, the percent of the value that remains at the end of the year.